Russian Grain Estimates Expand

WASHINGTON - May 5/08 - SNS -- Russian grain production is expected to reach 84.67 million metric tons (MT) this season, helped along by a 200,000 MT increase in corn production estimates, according to the U.S. agricultural attache for the country.

Wheat and barley forecasts remain at 51.2 million MT and 17.7 million MT, respectively Grain feed consumption in 2008 will increase to 36.4 million MT from the estimated 35.1 million MT in 2007 The export forecast is 14.5 million MT (up 1.2 million MT from 2007), including 12.8 million MT of wheat and wheat flour in grain equivalent and 1.55 million MT of barley.

For 2008, the Russian Ministry of Agriculture forecasts that 85 million MT of grain will be produced, while expert forecasts vary from 82 million MT to 90 million MT Several of the most pessimistic forecasts (75-80 million MT) are based on the possible occurrence of severe drought and land ownership problems, which would decrease producer incentive to invest in yield increasing agricultural technologies and soil improvement methods However, progress in sowing and spring fertilization throughout April, as well as reports on the improvement of agronomy practices in the major grain producing regions, shows that prospective yields for the 2008 grain crop will be better than in previous years

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